A closer look at crediting methods Each crediting method works a little bit differently. Learn about each method, and why each strategy may be more effective in specific situations.
1-Year Point-to-Point with Cap Your account tracks the performance of the index.
2-Year Point-to-Point with Cap
1-Year Point-to-Point with Participation Rate Your account tracks the performance of the index. On each contract anniversary, the performance of the index is evaluated. If the index experiences positive growth during the last crediting period, your interest will be credited based on a Participation Rate (a percentage of the total growth of the index). If the performance is negative, you will receive no Index Credit. Highlights: • Potential for better returns during periods of strong index growth. • With no cap, there is higher potential for the amount you can earn if the index experiences strong growth. • You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
Your account tracks the performance of the index. On your contract anniversary every two years , the performance of the index is evaluated. If the index experiences positive growth during the last crediting period, you will be credited that amount of interest up to the declared Index Cap for the two-year period (the cap may change every two contract years). If the performance is negative, you will receive no Index Credit. Highlights: • Potential for higher caps than an annual point-to-point strategy, thus potential for better returns (keep in mind that your account is only evaluated every two years, resulting in fewer crediting opportunities). • You cannot lose money if the
On each contract anniversary, the performance of the index is evaluated. If the index experiences positive growth during the last crediting period, you will be credited that amount of interest up to the declared Index Cap for the year (the cap may change at the start of each contract year). If the performance is negative, you will receive no Index Credit. Highlights: • Potential for better returns during periods of modest index growth. • You cannot lose money if the
index performs poorly. The worst you can do is earn 0% for a given year.
index performs poorly. The worst you can do is earn 0% for a given period.
The indexes are not available for direct investment. More information on these indexes can be found on page 16.
2038950
7
Made with FlippingBook - Share PDF online